Developing Procurement Documents for Progressive Design-Build Projects
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The document outlines the development of model procurement documents for progressive design-build (PDB) projects, detailing how PDB enables owners to collaborate closely with design-build teams to make informed decisions. It discusses the key considerations for PDB procurement, including the necessary legal authority, selection criteria, and components of requests for qualifications and proposals. Additionally, it provides a thorough overview of evaluation criteria and scoring methodologies to ensure fair and transparent selection of design-builders.
Developing Procurement Documents for Progressive Design-Build Projects
- 1. Developing Model Procurement Documents for Progressive Design-Build Projects March 22, 2103 John Awezec, P.E., LEED, AP – HDR, Inc. John Doller, P.E. – Carollo Engineers, Inc. Peter Hughes – Executive Director WDBC
- 2. Model Procurement Documents for Progressive Design-Build
- 3. Developing Model Procurement Documents for Progressive Design-Build Projects Overview • What is progressive design-build (PDB)? How does it work? • Benefits of PDB • Key considerations in a PDB procurement – Understanding the model procurement documents • RFQ • RFP • Progressive Design Build Agreement • Implementing the PDB procurement
- 4. Project Delivery Options Traditional Delivery Alternative Delivery Construction “Progressive” Lump-Sum Design-Build- Design-Bid-Build Management at Risk Design-Build Design-Build Operate/ (DBB) (CMAR) (GMP) (LS) Finance, etc.
- 5. Progressive Design-Build In a progressive design-build procurement, the design-builder is selected primarily based on qualifications before substantial design is completed. Together, the owner and the design-build team advance the design, incorporating the details desired by the owner and providing the owner with cost input regarding options the owner is considering. This open- book approach enables the owner to make well-informed decisions on the overall quality of the project.
- 6. Progressive Design-Build Construction estimating can Owner “Progressive” estimates keep start very early in design, owners informed and support- allowing comparison of specific informed scope adjustment technical solutions decisions PM/OA Design/Builder Design Definition Design Development and Construction 100% Guaranteed maximum price First fully detailed estimate Owners can use third-parties to established at the right time: can be used to establish a scope baseline. Estimating verify cost . . . Risk and contingency reduced, process is “open book” . . . and go to the hard-bid market schedule needs met if needed (the “off-ramp”)
- 7. Progressive Design-Build Owner PM/OA Design/Builder Design Definition Design Development and Construction 100% Phase 1 Phase 2 GMP
- 8. Progressive Design-Build Owner • Investment in projects, not procurements • Offers owners maximum flexibility/opportunity to collaborate on PM/OA Design/Builder permitting/ design • Maximizes overall schedule • Owners have an “off-ramp” in case of permitting issues or if GMP Design Design Development and Construction can’t be negotiated Definition • Very successful evolving model 100%
- 9. Key Considerations in PDB Procurement • Existing legal authority • Basis for selection • Required contents for submission • Evaluation criteria and scoring methodology • PDB Contract – Agreement – General Conditions
- 10. Legal Authority • Verify State and local procurement laws – Is PDB allowed? – Requirements for procurement • One step vs. Two-step process • Qualifications only vs. “best value” (quals + cost) • Self performance of work • Water Design Build Council survey (July 2012) • Survey of relevant state legislation for select states • Available on WDBC website
- 11. Legal Authority •Does not expressly permit PDB •Allows evaluation of RFP based on criteria deemed appropriate for the project •Does not prohibit two-step process •Best value evaluation Virginia •Requires price consideration in evaluation, but need not be the sole determining factor
- 12. Basis for Selection Qualifications-Based Selection Best-Value Selection • Employ evaluation criteria that are • Allows price or costs to be traditionally used for any considered with qualifications qualifications-based selection • Total cost of construction is not a • Owner able conduct process factor efficiently • Typical cost considerations include: • Reduces total time for • Fixed fees for procurement preconstruction services • Reduces cost of procurement • Raw labor hour rate sheet • Reduces complexity • Design-builder fee or markup percentage of allowable • Potentially allows for a larger pool project costs of qualified firms to participate • Fixed fee for General Condition costs
- 13. Basis for Selection Qualifications-Based Selection Best-Value Selection Basic Intent of PDB is that selection of the • Employ evaluation criteria that are • Allows price or costs to be design-builder is heavily based on qualifications traditionally used for any considered with qualifications qualifications-based selection • Total cost of construction is not a • Fees and rates account for relatively small percentage of • Owner able conduct process factor overall project costs efficiently • Typical cost considerations include: • Reduces• total time for costs should be kept to minimum for Weighting of • Fixed fees procurement preconstruction services • Some state procurement laws dictate minimum • Reduces cost of procurement percentages • Raw labor hour rate sheet • Reduces• complexity • Design-builder fee Model procurement documents provided suggestions or markup percentage of allowable • Potentially allows for a larger pool on weighting of costs project costs of qualified firms to participate • Fixed fee for General Condition costs
- 14. Basis for Selection Various Procurement Processes • Two categories for Procurement Single-Step Two - Step Request for Request for Request for Request for Qualifications Proposals Qualifications Qualifications Request for Request for “Best Value” Proposals Proposals Qualifications Qualifications only + Qualifications “Best Value” Costs Qualifications + only Costs
- 15. Basis for Selection Various Procurement Processes • Single-Step – Qualifications Selection Single-Step • If schedule is a critical driver Two - Step Request for • for Request If maximum owner/design-builder for Request for Request Qualifications Proposals collaboration Qualifications is a priority Qualifications Request for Request for • If state/local law allow qualifications- only “Best Value” Proposals Proposals Qualifications Qualifications + selection WDBC No. only W-1200-2013 Qualifications “Best Value” Costs Qualifications + only Costs
- 16. Basis for Selection Various Procurement Processes • Single-Step: Best Value Single-Step • If schedule is a critical driver Two - Step Request for Request for • If maximum owner/design-builder Request for Request for Qualifications Proposals Qualifications Qualifications collaboration is a priority Request for Request for • If Owner prefers Proposals (or ifProposals state/local Qualifications only WDBC No. law requires) inclusion of cost as a Qualifications “Best Value” W-1300-2013 selection factor only Qualifications + Costs
- 17. Basis for Selection Various Procurement Processes • Two –Step: Request for Qualifications • If schedule can accommodate Single-Step Two - Step the time required for two procurement steps Request for Request for Request for Request for Qualifications Proposals Qualifications Qualifications • Potentially greater degree of Request for Request for project data provided with RFP “Best Value” Proposals Proposals Qualifications Qualifications only + WDBC No. Qualifications “Best Value” • Short list firms to receive RFP Costs only W-1400-2013 Qualifications + Costs
- 18. Basis for Selection Various Procurement Processes • Two-Step: Request for Proposals • Includes Single-Step Project Approach Two - Step • Potentially greater degree of Request for Request for Request for Request for Qualifications Proposals project data provided with RFP Qualifications Qualifications Request for Request for • Qualifications only or best value “Best Value” Proposals Proposals Qualifications Qualifications only + Qualifications Quals “Best Value” Best Costs WDBC No. Qualifications + only only value Costs W-1500-2013
- 19. Required Contents for Submission • Model Documents – RFQ & RFP – Comprehensive – Based on historical submission requirements from previous PDB deliveries – Provide foundation for development RFQ & RFP that best suits an Owner’s specific needs
- 20. Required Contents for Submission • Statement of Qualifications - Contents •Section 1. Background • Section 2. Project Overview • Section 3. Progressive Design-Build Services • Section 4. Procurement Process • Section 5. SOQ Submission Requirements • Section 6. SOQ Evaluation and Selection • Section 7. Conditions for Respondents WDBC Documents W-1200-2013 & W-1400-2013
- 21. Required Contents for Submission • Statement of Qualifications - Contents ATTACHMENTS • A: Definition of Terms • B: Scope of Design-Builders Services • C: Draft PDB Contract • D: Project Background Documents • E: Project Technical Requirements • F: Submission Forms WDBC Documents W-1200-2013 & W-1400-2013
- 22. Required Contents for Submission • Statement of Qualifications - Contents •Section 1. Background • Section 2. Project Overview DIFFERENCES • Section 3. Progressive Design-Build Services • Procurement Schedule • Section 4. Procurement Process • Single-Step - includes Project Approach and PDB • Section Contract Markup 5. SOQ Submission Requirements • Evaluation criteria• / weighting Evaluation and Selection Section 6. SOQ • Section 7. Conditions for Respondents • Selection WDBC Documents W-1200-2013 & W-1400-2013
- 23. Required Contents for Submission • Statement of Qualifications - Contents •Section 1. Background • Section 2. Project Overview • Section 3. Progressive Design-Build Services • Section 4. Procurement Process • Section 5. SOQ Submission Requirements • Section 6. SOQ Evaluation and Selection • Section 7. Conditions for Respondents WDBC Documents W-1200-2013 & W-1400-2013
- 24. Required Contents for Submission • Statement of Qualifications – Section 5 • Transmittal Letter • Part 1: Executive Summary • Part 2: Design-Builder Profile • Part 3: Project Team • Part 4: Experience WDBC Documents W-1200-2013 & W-1400-2013
- 25. Required Contents for Submission • Transmittal Letter PURPOSE Identifies the design-builder and provides contact information • Page limited • Contact information for Respondent Contact • Signatory for contracts • Must make reference to “Forms of Compliance”
- 26. Required Contents for Submission • Part 1: Executive Summary PURPOSE Provides first glance overview of the SOQ contents, highlighting important features • Page limited • Key elements of the SOQ • No additional information not found in SOQ
- 27. Required Contents for Submission • Part 2: Design-Builder Profile PURPOSE Provides general, legal and financial information concerning the design-builder • General • Performance bonds • Legal Structure • Insurance • Material adverse changes in • Project office location financial position • Financial condition • Legal proceedings
- 28. Required Contents for Submission • Part 2: Design-Builder Profile PURPOSE Provides general, legal and financial information concerning the design-builder • Completion of contracts • Violation of laws • Debarred from bidding
- 29. Required Contents for Submission • Part 3: Project Team PURPOSE Describes key personnel and additional firms * ORGANIZATION * ROLES & RESPONSIBILITIES * RESUMES Design-builder/other firms * Roles and responsibilities of all firms * Phase 1 and Phase 2 organizational charts
- 30. Required Contents for Submission • Part 3: Project Team PURPOSE Describes key personnel and additional firms * ORGANIZATION * ROLES & RESPONSIBILITIES * RESUMES Key Personnel * Roles and responsibilities * Level of commitment * Resumes
- 31. Required Contents for Submission • Part 4: Experience PURPOSE Provides detailed information on relevant design, construction, design-build projects and safety • Reference projects – number specified by owner • Three categories: – Design – Construction – Design-build
- 32. Required Contents for Submission • Part 4: Experience PURPOSE Provides detailed information on relevant design, construction, design-build projects and safety • Information provided for each project: – Name of owner – Year started and completed – Owner reference and contact information
- 33. Required Contents for Submission • Part 4: Experience PURPOSE Provides detailed information on relevant design, construction, design-build projects and safety • Information provided for each project: – Firms and key personnel that participated in the project – Description of the project • One–page summary table to cross reference the projects with project team (firms and key personnel)
- 34. Required Contents for Submission • Request for Proposals • Two-Step RFP discussed (W-1500-2013) • Used for both - Qualifications based selection - Best Value selection • RFP for Single-Step also includes requirements outlined in Single-Step RFQ WDBC Documents W-1300-2013 & W-1500-2013
- 35. Required Contents for Submission • Request for Proposals - Contents •Section 1. Background • Section 2. Project Overview • Section 3. Progressive Design-Build Services • Section 4. Procurement Process • Section 5. Proposal Submission Requirements • Section 6. Proposal Evaluation and Selection • Section 7. Conditions for Respondents WDBC Documents W-1300-2013 & W-1500-2013
- 36. Required Contents for Submission • Request for Proposals - Contents ATTACHMENTS • A: Definition of Terms • B: Scope of Design-Builders Services • C: Draft PDB Contract • D: Project Background Documents • E: Project Technical Requirements Not used if “Qualifications Only” selection • F: Fee and Rate Proposal Form WDBC Documents W-1300-2013 & W-1500-2013
- 37. Required Contents for Submission • Request for Proposals - Contents •Section 1. Background • Section 2. Project Overview • Section 3. Progressive Design-Build Services • Section 4. Procurement Process • Section 5. Proposal Submission Requirements • Section 6. Proposal Evaluation and Selection • Section 7. Conditions for Respondents WDBC Documents W-1300-2013 & W-1500-2013
- 38. Required Contents for Submission • Request for Proposals - Contents • Transmittal Letter • Part 1: Executive Summary • Part 2: Project Approach • Part 3: Draft PDB Contract Markup Not used if “Qualifications Only” selection • Part 4: Fee and Rate Proposal Not used in Single-Step Process • Part 5: Updated Qualifications WDBC Documents W-1300-2013 & W-1500-2013
- 39. Required Contents for Submission • Transmittal Letter • Part 1: Executive Summary Same as the RFQ
- 40. Required Contents for Submission • Part 2: Project Approach – Can include discussion on: • How collaborative relationship with the Owner would be established • How the design and construction processes will interface • Critical work components for success • The process for GMP development
- 41. Required Contents for Submission • Part 2: Project Approach – Also can include discussion approach to: • Communications with owner and stakeholders • Quality management • Risk management • Adherence to the GMP and schedule
- 42. Required Contents for Submission • Part 3: Draft PDB Contract Markup PURPOSE Provides a description and discussion of the rationale for proposed revisions to the draft PDB contract • Allows proposers to revisions to the contract that would more efficiently allocate: – Risk Owner is not obligated to accept any of the suggested revisions – Improve parties understanding of risk allocation – Improve clarity
- 43. Required Contents for Submission • Part 4: Fee and Rate Proposal PURPOSE Provides certain fees and rates for design-builder services during Phase 1 and Phase 2 • Fixed fee or hourly rates for: – Design services – Engineering services during construction – Pre-construction services • Design-builder fee or markup as a percentage of project costs • Fixed fee or hourly rates for components of the GCs.
- 44. Required Contents for Submission • Part 5: Updated Qualifications PURPOSE Confirm prior SOQ and describes any changes to projects team or key personnel and explains reason for change • Any proposed changes to the SOQ • Resumes of additional personnel proposed • Proposed changes subject to acceptance of owner
- 45. Evaluation Criteria and Scoring Methodology EVALUATION CRITERIA Should be designed to select a design-builder with the highest probability of achieving an Owner’s project objectives • Fair • Clear • Transparent
- 46. Evaluation Criteria and Scoring Methodology • Minimum qualification requirements – SOQ and Proposal for Single-Step – Pass/Fail * Performance bond * Net worth * Material adverse conditions * Licensing and registration * Design experience * Construction experience * Design-build experience * Safety record
- 47. Evaluation Criteria and Scoring Methodology Experience and capabilities Fee Best Value Document Organization, Quals Procurement Design- Key Project & Management Approach Builder Personnel and Safety Approach Rate Proposal Single-Step RFQ 1200 X l l l l RFP 1300 X l l l l l Two - Step RFQ 1400 X l l l RFP 1500 X l l l l l RFP 1500 X l l l l
- 48. Evaluation Criteria and Scoring Methodology Experience and capabilities Fee Best Value Document Organization, Quals Procurement Design- Key Project & Management Approach Builder Personnel and Safety Approach Rate Proposal Single-Step RFQ 1200 X 40% 30% 15% 15% RFP 1300 X 30% 20% 15% 15% 20% Two - Step RFQ 1400 X 40% 40% 20% RFP 1500 X 30% 20% 15% 15% 20% RFP 1500 X 40% 30% 15% 15%
- 49. Progressive Design Build Contract • Agreement • Attachments – A: Scope of Work – B: Compensation – C: Schedule – D: General Conditions – E: Indemnity, Insurance & Bonding – F: Owner’s Project Criteria – G: Owner’s Permit List
- 50. Progressive Design Build Contract • Agreement
- 51. Progressive Design Build Contract • Attachment A – Scope of Work
- 52. Progressive Design Build Contract • Attachment B - Compensation
- 53. Progressive Design Build Contract • Attachment D – General Conditions
- 54. Progressive Design Build Contract • Attachment E – Indemnity, Insurance & Bonding
- 55. Progressive Design Build Contract • Attachment F – Owner’s Project Criteria
- 56. Progressive Design Build Contract • Attachment G – Owner’s Permit List
- 57. Implementing the PDB Procurement Plan Project RFQ RFP Permits/Design Input Verify DB Performance (Verify) O&M Define Performance Criteria Tech Support Verify GMP Inspection Quals Propose Concept Design/Develop GMP Construction, Startup Warranty Complete Design RFQ – defines qualifications Select from qualified firms criteria; short lists qualified - selection based on qualifications; Agree on GMP - based on firms may include “rates” or “conceptual/ collaborative scope and design; target price” in evaluation pricing may be verified by third party LC
- 58. Model Procurement Documents for Progressive Design-Build www.waterdesignbuild.org